The UAE has invested over AED 294 billion (USD 80 billion) in its local petrochemicals sector as of Q1 2025, reflecting a strategic push to diversify the economy and expand the country’s non-oil industrial base. According to a report by the Abu Dhabi-based InterRegional for Strategic Analysis, these investments solidify the UAE’s status as a leading regional industrial hub.
Key projects include major production expansions and integration efforts, especially in the Ruwais Industrial Complex and the “TA’ZIZ” project, which aims to create the UAE’s largest integrated petrochemical hub with an initial investment of AED 11 billion.
In February 2025, ADNOC awarded a AED 6.2 billion contract to build the UAE’s first methanol plant with a production capacity of 1.8 million tons per year. ADNOC also merged its polyolefins assets with Austria’s OMV to establish Borouge Group International, creating the world’s fourth-largest company in the sector with a market value of USD 60 billion.
Petrochemical exports surged by 11% in 2024, reaching 3.8 million tons, and were valued at over USD 2.3 billion in Q1 2025, driven by increased output of methanol, polyethylene, and polypropylene.
While the U.S. market remains stable, the UAE continues to diversify exports toward Asia, Africa, and South America, supported by Comprehensive Economic Partnership Agreements (CEPA) with India, Turkey, and Indonesia, which eliminated tariffs on many petrochemical products.